Remove Balance Sheet Remove Fixed Costs Remove Revenue
article thumbnail

CEOs Can’t Fight The Fed, But You Can Do These Things To Weather The Coming Storm

Chief Executive

FWIW, CEO100 is our peer network exclusively for CEOs who run complex organizations with more than $100 million in revenues— learn more about membership ; it’s excellent). If your costs are likely to increase by 20% or more over the next three years, have a multi-pronged approach and take bold actions. to make more costs variable).

article thumbnail

There Is A Roadmap Through Today’s Financial Crunch

Chief Executive

CFOs have the data; you need to massage it, P&L and balance sheets, in ways that people can understand. CFOs may want to guide their companies “to grow cash generation” instead of revenues per se. We’re not going to final costs — just gross margin, and gross margin that is inflation-adjusted. Wield unit economics.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

In a rapidly changing industry ecosystem, heavy investments in hard infrastructure can burden balance sheets and limit flexibility. Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity.

article thumbnail

How Companies Can Use Investors to Their Advantage

Harvard Business Review

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business.

article thumbnail

Exclusive: Jim Collins on ‘Thriving In Chaos’

Chief Executive

You see people who maintain highly conservative balance sheets and enormously prudent financial positions. And if we do that, we can’t help but grow revenues per fixed cost. They’re not the most efficient use of capital; they’re not the most efficient use of buffers. What they are is enormously resilient by design.

article thumbnail

4 Types of Activist Investors and How to Spot Them

Harvard Business Review

This typically means they look to re-engineer the balance sheet to increase shareholder yield, over the shortest amount of time possible, which typically ranges between six to twelve months. In recent years, both companies exhibited compressed margins, flat revenue growth, and lagging returns. Example: Jolly Inc.